The decision comes following unsatisfactory exploration results from the Kaieteur block as well as the oil and gas explorers focus on Stabroek block.
So far more than 11 billion barrels of oil and gas have been discovered in the Stabroek block, which is located some 200km offshore Guyana and is spread over an area of 6.6 million acres.
Kaieteur, one of two smaller non-productive blocks that Exxon owns, spans 3.3 million acres.
Exxon and Hess have transferred their shares in Kaieteur to Ratio Guyana and Cataleya Energy, which initially owned the exploration licenses.
Subject to approval from the government, Ratio will replace Exxon as the operator of the block.
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Exxon’s first well in the block was declared to be non-commercial.
It has drilled three wells, which were also commercially not viable, in the smaller Canje block.
Through the Stabroek block, a group comprising Exxon, Hess, and CNOOC oversees all offshore production in Guyana.
Some 380,000 barrels of oil is produced daily by that block.
As the operator, Exxon holds a 45% stake in Stabroek. CNOOC has 25% working interest and the remaining 30% stake is held by Hess.
By 2027, Exxon hopes to increase production from the Stabroek to over 1.2 million barrels of oil and gas equivalent per day.
“Our withdrawal from the Kaieteur block has no impact on our commitment to seeking further exploration and development opportunities and to generating additional value for the government and people of Guyana,” Exxon was quoted as saying by the news agency.
Earlier this month, Guyana received eight bids for 14 oil and gas exploration blocks.
Exxon, Hess, French oil and gas major TotalEnergies and Qatar Energy were among the bidders.
Last week, Exxon committed to increase oil production in Nigeria by nearly 40,000 barrels per day.